
Grayscale Investments has introduced a new investment fund dedicated to Dogecoin (DOGE), expanding its portfolio of single-asset crypto products. This announcement highlights Dogecoin’s prominence as the leading memecoin by market capitalization. The Grayscale Dogecoin Trust will provide institutional investors access to Dogecoin, an open-source, peer-to-peer digital currency derived from Litecoin and indirectly from Bitcoin.
Dogecoin operates on a proof-of-work blockchain network that resembles Bitcoin’s, but it is less computationally demanding and lacks a cap on the total DOGE supply. Rayhaneh Sharif-Askary, Grayscale’s head of product and research, stated that Dogecoin has evolved into a potential tool for enhancing financial accessibility.
The launch of this fund coincides with an increasing interest in memecoins from traditional asset managers. Recently, other memecoins like the Official Trump (TRUMP) memecoin on the Solana network have captured investor attention, leading to heightened activity and network congestion on Solana. Moreover, asset managers such as Osprey Funds and REX Shares have filed to launch exchange-traded funds for various memecoins, including DOGE, TRUMP, and Bonk (BONK).
Continuing its expansion, Grayscale previously launched funds for Lido and Optimism’s governance tokens in December and for Aave’s governance token in October. It also revealed an interest in approximately 35 altcoins for future investment products. Additionally, Grayscale introduced trusts targeting the native tokens of Sky, Bittensor, and Sui in August. As the largest crypto fund manager by assets under management, Grayscale holds nearly $35 billion in assets. The firm is particularly known for its Bitcoin and Ethereum exchange-traded funds, the Grayscale Bitcoin Trust and Grayscale Ethereum Trust.